The key to the approvals was a degree of portfolio transparency that managers will find very hard to live with, according to ETF officials.
The disclosure conditions which Bear Stearns Asset Management, PowerShares Capital Management, Barclays Global Investors and WisdomTree Investments agreed to used identical language. They would mean revealing a portfolio’s holdings at the market opening the next day. That much disclosure might tempt free riders and front runners. “A really good manager is not going to want to disclose the portfolio because then his value decreases,” said George Simon, partner at Foley & Lardner, who helped guide Bear Stearns through the approvals process.
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